San Diego Says Firms Rigged Muni Derivatives Bids

Law360, New York (September 29, 2008, 12:00 AM EDT) -- San Diego County has joined thousands of municipalities across the country in accusing big name financial giants Bank of America NA, UBS AG and JPMorgan Chase & Co., among many others, of rigging the bids offered in municipal derivatives auctions.

The county accused the investment banks of colluding to divvy up the market for municipal derivative instruments and forcing San Diego to earn a lower return on its investments. The suit, transferred to the U.S. District Court of Central California last week from state court, mirrors...